Remember when you were in elementary school and your teacher asked you to write an essay about what you would like to be when you grow up? Well, think about that same question but now about what you would like to do when you retire. Have you ever thought about that before? And if you have, do you think your legal pension will suffice for all your great plans? And whether you’ll still have time to do all those things? In this day and age, nothing is certain; maybe we will have to work until we are 80. But what would you do? Start saving now or wait a few more years and work a little longer in your old days?
ERGO Insurance did an online study to find out how Generation Y thinks about their pension. They asked 467 Belgian Millennials and about 88% says they would rather save than work longer to fund their retirement. Contrary to our parents, we learned that the economy can change rapidly and that makes us think more about our future. We are all very satisfied with our wealthy lives and we are used to getting what we want when we want it. And that’s why no less than 83% of the young Belgians are convinced that their legal pension will not be sufficient to maintain their current life standard.
In 2012 almost half of all new savings contracts at Belfius were signed by clients aged under 30. At ING that number was 30%. This is because most people over 30 already have saving systems, but there clearly is an increase in new Gen Y clients. According to Beama (the Belgian Assets Managers Association) the percentage of new clients aged 18 to 30 is 42%, compared to two years ago when it was only 25%. Of the young Belgians, ERGO has interviewed, a substantial 36% actually already has a private pension plan installed.
ERGO also asked Millennials about their attitude towards financial products, apparently Gen Y has a high faith in the stock market. Four out of ten indicates wanting to invest 30% of their pension plan money in stock-market-dependent funds, and 11% would even invest 40% in them.
So, what would you do? Adapt a true Gen Y lifestyle and work so you can live, also after your retirement, or would you rather live to work as a Baby Boomer and find your passion in your work and keep going on as long as you can? But if your work isn’t your ultimate passion, maybe you could think about starting to save for your pension? Because you probably don’t want to end up like these guys.